Wednesday, March 21, 2012

TOCOM indicating upward trend


Natural rubber in the international market showed a mixed trend because of uncertainty over demand from China, Thai rubber intervention plan, which is scheduled to start from 22nd March and lean production season in major natural rubber producing countries. Natural rubber supply in Thailand is expected to fall as rubber trees will stop producing latex during the dry season.

There is an indication that China's auto sales this year may not be able to reach 5% growth because of the difficult macroeconomic situation, which in turn will dampen auto demand. China Rubber Industry Association (CRIA) has urged government authorities to call off customs duties for imported rubber to protect domestic tyre industry.

Natural rubber in the Indian market continued to rise. Today, RSS4 grade closed at `198 a kg at Kottayam and RSS3 grade closed at `199.45 from `200.52 a kg at Bangkok. In futures, the April series were trading at `200.32, May at `204.99, June at `208.40, July at `207.54, August at `205.98 and September at `204 a kg on NMCE. The March futures for the grade closed at ¥314, April at ¥315.2, May at ¥319.7, June at ¥324.5, July at ¥328.5 and August at ¥332.4 on the Tokyo Commodity Exchange.

Read lot more in the latest issue of Rubber4U

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